Business Combinations – Disclosures, Goodwill and Impairment (Possible Amendments to IFRS 3 and IAS 36) [ED]
| Comments are requested by July 15, 2024. Responses to the AcSB on the additional question set out below are due on the same date. In order for the AcSB to consider feedback as part of its comment letter to the IASB, comments should be sent to the AcSB by June 14, 2024. |
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Next steps: |
The IASB will begin considering the comments received in H2 2024 |
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Last updated: |
March 2024 |
Overview
The objective of this research project was to consider how to address the following three areas of focus identified in the Post-implementation Review (‘the PIR’) of IFRS 3 Business Combinations:
- investors receiving insufficient information about the performance of acquisitions;
- impairment tests being costly and complex;
- impairment losses on goodwill sometimes being recognized too late; and
The proposals in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment, published in March 2024, addressed these concerns.
The IASB is proposing amendments to IFRS 3 Business Combinations. The proposed amendments would require companies to report the objectives and related performance targets of their most important acquisitions, including whether these are met in subsequent years. Companies would also be required to provide information about the expected synergies for all material acquisitions. However, companies would not be required to disclose information that could compromise their acquisition objectives.
The IASB also proposes related amendments to IAS 36 Impairment of Assets to make targeted improvements to the impairment test.
The AcSB encourages interested and affected parties in Canada to respond to the IASB on its Exposure Draft.
The AcSB would also like input from Canadian respondents about the appropriateness of these proposals for application in Canada.
For further details, visit the project page on the IASB’s Web site.
Other developments
April 2024
On April 23, 2024, the AcSB proposed, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
March 2024
On March 14, 2024, the IASB has published a package of proposals aimed at enhancing the information companies provide to investors about acquisitions.
September 2023
On September 26, 2023, the IASB staff updated the work plan to indicate that the Board plans to issue an Exposure Draft in Q1/2024.
December 2022
In December 2022, the IASB decided to change the name of the project from Goodwill and Impairment to Business Combinations—Disclosures, Goodwill and Impairment.
At its meeting on December 13, 2022, the IASB decided to add this standard-setting project to its agenda.
September 2022
On September 26, 2022, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in November 2022.
June 2022
On June 27, 2022, the IASB staff updated the work plan to indicate that the Board plans to decide the project direction in Q4/2022.
December 2021
On December 17, 2021, the IASB staff updated the work plan to indicate that the IASB plans to decide the project direction in H2/2022.
November 2021
On November 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q2/2022.
October 2021
On October 29, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q1/2022.
September 2021
On September 27, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in the first half of 2022.
July 2021
On July 23, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in September 2021.
May 2021
On May 28, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q3/2021.
April 2021
On April 30, 2021, IASB staff updated the Work Plan to indicate that the Board plans to review the Discussion Paper Feedback in May 2021.
March 2021
On March 26, 2021, IASB staff updated the Work Plan to indicate that the Board plans to review the Discussion Paper Feedback in April 2021.
January 2021
On January 29, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to review the Discussion Paper Feedback in March 2021.
September 2020
On September 28, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the Discussion Paper Feedback in Q1/2021.
April 2020
On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in the 1st half of 2021. The comment period on the Exposure Draft was also extended by the IASB to December 31, 2020.
March 2020
On March 21, 2020, the IASB staff updated the work plan to indicate that the Board plans to discuss the feedback on its Discussion Paper in the second half of 2020.
On March 19, 2020, the IASB published a comprehensive discussion paper DP/2020/1 Business Combinations — Disclosures, Goodwill and Impairment. The IASB's related project aims at improving the information companies provide to investors, at a reasonable cost, about the businesses those companies buy and would help to hold management to account for its decisions to acquire those businesses. In this context, the IASB is investigating possible improvements to IFRS 3, Business Combinations and IAS 36, Impairment of Assets. The comment period on the discussion paper ends on September 15, 2020.
February 2020
On February 28, 2020, the IASB staff updated the work plan to indicate that the IASB plans to issue a Discussion Paper in March 2020.
December 2019
On December 13, 2019, the IASB staff updated the Work Plan to indicate that the IASB plans to issue a Discussion Paper in February 2020.
October 2019
On October 1, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue a Discussion Paper in Q1/2020.
July 2019
On July 29, 2019, the IASB® staff updated the work plan to indicate that the Board expects issue a Discussion Paper in Q4/2019.
January 2019
On January 25, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue a Discussion Paper in the second half of 2019.
December 2018
On December 14, 2018, the IASB® staff updated the work plan to indicate that the Board expects to issue a Discussion Paper or Exposure Draft in the second half of 2019.
May 2018
On May 25, 2018, the IASB staff updated the work plan to indicate that the Board expects to issue a Discussion Paper or Exposure Draft at some date in the future (no date specified).
January 2018
On January 26, 2018, the IASB Staff updated this project to indicate that the IASB now expects to issue a Discussion Paper or Exposure Draft in the second half of 2018.
November 2017
On November 16, 2017, the IASB staff updated the work plan to indicate that the IASB expects to issue a Discussion Paper or Exposure Draft in the first half of 2018.
June 2017
In June 2017, the IASB staff updated the work plan to indicate that the IASB expects to issue a Discussion Paper in the 1st half of 2018.
March 2017
On March 23, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to decide the project direction after September 2017.
December 2016
On December 15, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to decide the project direction after June 2017.
September 2016
On September 23, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to decide the project direction by March 31, 2017.
